When you're selling your house, the price you choose is the most important aspect. There are three reasons why overpricing your home will cause major problems in your home sale.
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When you're selling your home, deciding on a price is the most crucial aspect of the real estate process. Overpricing your home can cause a lot of problems.
Sometimes we have sellers wanting to list their home at a price higher than the home's market value hoping that a buyer will make an offer that they can negotiate on, or they can simply reduce the price later.
There are three major reasons why you should avoid overpricing your home when selling, though:
- Overpriced listings can scare off buyers and agents. Most buyers believe that if sellers were willing to take a lower price, they would have simply priced their home for less in the first place, and they don't see the home at all. If they do see the home, they'll still be hesitant to write an offer.
- Homes that are overpriced spend significantly more time on the market, and statistics show this. The most impact your home will have is in those first few weeks as a fresh listing on the market. That's the time when your house will receive the most attention from buyers and agents. If your house spends those first few weeks at the wrong price, it may mean missing out on serious buyers who have been waiting for a home just like yours.
- If you overprice your home, it will be dropped from many online searches. Since buyers have to search within a budget, they cap online searches at a certain price range. According to the National Association of Realtors, 80% of home buyers in 2015 found the home they bought online.
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Overpricing your home can scare off buyers and agents alike.
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Pricing your home at market value rather than above it will expose your home to the maximum number of buyers out there.
